HDB Financial Services likely to launch Rs 12,500-crore IPO by mid July

HDB Financial Services to Launch Rs 12,500-Crore IPO by Mid-July.

Expert Analysis :

• IPO Size & Timeline: HDB Financial Services plans to launch a Rs 12,500-crore IPO by mid-July, making it 2025’s largest issue so far.

• UDRHP Preparation Underway: HDB Financial Services is preparing its updated draft red herring prospectus (UDRHP), a key precursor to filing the final RHP.

• Filing and Launch Timeline: The UDRHP is likely to be filed before the end of this month, with the IPO launch expected by early to mid-July, subject to market conditions.

• Regulatory Approvals in Place: HDB Financial Services filed its DRHP on October 30 and received SEBI’s approval for the IPO at the end of May.

• Next Steps Pending: Once the UDRHP is approved, the company will file the RHP with SEBI and the Registrar of Companies to proceed with the IPO.

• Compliance Driver: Driven by RBI’s mandate for “upper layer” NBFCs to list by September 2025, the move ensures regulatory alignment.

• Strong Financial Growth: As of September 30, 2024, HDB’s gross loan book reached Rs 98,620 crore (CAGR: 20.93%), and FY24 profit stood at Rs 2,460 crore (CAGR: 55.9%) between FY22 and FY24.

• Granular Loan Book Strategy: As of September 30, 2024, HDB’s top 20 customers accounted for less than 0.36% of total gross loans, with an average ticket size of approximately Rs 145,000, reflecting a highly granular loan book approach.